Financial Performance - Annualized Recurring Revenue (ARR) reached $836 million, growing 48% year-over-year[1] - Total revenue for Q1 2025 was $238 million, an increase of 29% year-over-year[3] - Net income decreased by 52% to $10.946 million compared to $22.639 million in Q1 2024[3] - Diluted earnings per share (EPS) was $0.24, a decrease of 53% from $0.51 in the same quarter last year[3] - Operating margin was 14%, down from 19% in the same quarter last year, a decrease of 500 basis points[3] - Non-GAAP income from operations increased to $93,595,000 for the three months ended February 28, 2025, up 22% from $76,756,000 in the prior year[16] - Cash flows from operations for the three months ended February 28, 2025, were $68,947,000, a decrease of 2% from $70,504,000 in the prior year[17] - Adjusted free cash flow for the three months ended February 28, 2025, was $73,211,000, reflecting a 1% increase from $72,204,000 in the same period last year[17] - The company reported capital expenditures of $1,290,000 for the three months ended February 28, 2025, compared to $309,000 in the same period last year, representing a 317% increase[17] Guidance and Projections - Guidance for FY 2025 revenue is projected between $958 million and $970 million[7] - The company expects GAAP income from operations for fiscal year 2025 to be between $137.2 million and $145.7 million, with an operating margin of 14% to 15%[18] - Non-GAAP diluted earnings per share for fiscal year 2025 is projected to be between $5.25 and $5.37, compared to GAAP diluted earnings per share of $1.19 to $1.35[19] - The company anticipates total adjustments for fiscal year 2025 to be $227.3 million, which includes acquisition-related expenses and restructuring expenses[18] Customer Metrics - Net Retention Rate surpassed 100%, indicating strong customer relationships[2] - The expectation is that contracts with terms less than one year will renew at rates equal to or better than annual or multi-year contracts, historically achieving favorable renewal rates[27] - Net Retention Rate (NRR) is calculated by comparing the ARR from a cohort of customers from 12 months prior to the current period, reflecting expansion and attrition, and is not derived from GAAP measures[31] Cash and Shareholder Actions - Cash and cash equivalents at the end of the quarter were $124.2 million[6] - The company repurchased $30 million of its shares during the quarter[4] Integration and Operational Challenges - The ShareFile integration is on track for completion by year-end 2025[4] - The company has indicated that it will continue to incur expenses related to the MOVEit vulnerability, impacting future operating expenses[25] - The company acknowledges that future acquisitions may involve unanticipated costs or integration issues that could disrupt operations[32] Revenue Recognition and ARR - Annualized Recurring Revenue (ARR) is a significant performance metric, representing the annualized revenue from all active and contractually binding term-based contracts, which is expected to continue as the majority of revenues[27] - The calculation of ARR includes revenue from maintenance, software upgrade rights, public cloud, and on-premises subscription-based transactions, helping to mitigate revenue fluctuations due to seasonality[27] - ARR includes amounts from monthly auto-renewing contracts, which may exceed total contract value at the end of the reporting period[28] - Revenue from term-based licenses is recognized upfront under ASC 606, with expectations for renewal at the end of the contract term[29] - The company emphasizes that ARR is not a forecast and may not be indicative of future revenue, as active contracts may or may not be renewed[31] Risks and Forward-Looking Statements - Forward-looking statements indicate potential risks including economic conditions, international sales risks, and cybersecurity threats that could materially affect business outcomes[32]

First Quarter 2025 Highlights: "We're extremely pleased with our excellent Q1 results," said Yogesh Gupta, CEO of Progress. "We are ahead, or on plan, with all our ShareFile integration milestones, which are providing significant contributions to ARR and revenues, as well as expense savings. Our solid performance on the top line was again driven by our product portfolio across the board, with our data platform and infrastructure management products having a particularly solid quarter. Our Net Retention Rate ...

Core Viewpoint - Progress Software (PRGS) is expected to report quarterly earnings of $1.04 per share, a decline of 16.8% year-over-year, while revenues are forecasted to increase by 27.7% to $235.85 million [1] Earnings Estimates - Analysts have maintained the consensus EPS estimate for the quarter over the last 30 days, indicating a collective reevaluation of initial estimates [1][2] - Revisions to earnings estimates are crucial for predicting investor actions regarding the stock, with empirical research showing a strong correlation between earnings estimate trends and short-term stock performance [2] Revenue Projections - Revenue from Services is projected to be $54.18 million, reflecting a year-over-year increase of 191.9% [4] - Revenue from Maintenance is expected to reach $107.98 million, indicating a 5.8% increase from the prior-year quarter [4] - Combined Revenue from Maintenance and Services is forecasted at $162.16 million, representing a 34.5% year-over-year change [4] - Revenue from Software Licenses is estimated at $73.37 million, suggesting a 14.5% increase year-over-year [5] Stock Performance - Progress Software shares have shown a return of -2.7% over the past month, slightly outperforming the Zacks S&P 500 composite's -2.9% change [6] - The company holds a Zacks Rank 3 (Hold), indicating expectations to mirror overall market performance in the near future [6]

Core Insights - Progress has been recognized by Gartner as a Visionary in the 2024 Magic Quadrant for Document Management for its ShareFile solution, which enhances productivity and security through AI features [1] - ShareFile was evaluated among 15 vendors based on its "Ability to Execute" and "Completeness of Vision," highlighting its transformative value for organizations [1] - Gartner reports that 70% to 80% of enterprise information is unstructured, presenting challenges for organizations to manage content effectively [1] Company Overview - Progress (NASDAQ:PRGS) provides AI-powered digital experience and infrastructure software, enabling organizations to develop and manage applications with agility [4] - The company serves over 4 million developers and technologists across hundreds of thousands of enterprises [4] Product Features - ShareFile offers advanced document management and collaboration solutions, including user-friendly client portals, document request lists, native e-signature functionality, and threat detection alerts [5] - The platform is designed to streamline workflows and enhance collaboration while ensuring security through AI-powered features [1][5]

Core Viewpoint - Progress (Nasdaq: PRGS) is set to release its financial results for the fiscal first quarter of 2025 on March 31, 2025, after market close, with a conference call scheduled for the same day at 5:00 p.m. ET [1] Group 1: Financial Results Announcement - The financial results for the first quarter of fiscal year 2025 will be released after market close on March 31, 2025 [1] - The first quarter ended on February 28, 2025 [1] Group 2: Conference Call Details - A live webcast of the conference call will be available, and participants are encouraged to join 15 minutes early to avoid delays [2] - An archived version of the conference call and supporting materials will be accessible on the Progress Investor Relations webpage after the live event [2] Group 3: Company Overview - Progress empowers organizations to achieve transformational success through AI-powered applications and digital experiences [3] - The company serves over 4 million developers and technologists across hundreds of thousands of enterprises [3]

Core Insights - Progress has announced the availability of over 50 enterprise-grade UI components from KendoReact for free, aimed at enhancing the development capabilities of the React community [1][5] - The initiative is designed to democratize access to high-quality UI components, allowing developers of all experience levels to create sophisticated applications more efficiently [2][3] Group 1: Product Offering - The free components include popular UI elements such as DropDownList, DatePicker, MultiSelect, and Buttons, along with features of the React Data Grid and professionally designed themes [3][5] - Developers will also gain access to Figma UI kits and learning resources, facilitating the creation of distinctive user interfaces while maintaining high-quality standards [3][5] Group 2: Community Engagement - Progress is hosting a 2-week virtual Dev Challenge to encourage innovative use of the free KendoReact UI components, with submissions accepted in various categories [4] - This initiative aims to foster innovation within the developer community and stimulate the growth of the React ecosystem [3][4] Group 3: Market Context - According to the 2024 Stack Overflow Developer Survey, nearly 42% of professional developers utilize React, highlighting its popularity due to flexibility and robust performance [2] - The introduction of free enterprise-grade tools is expected to further enhance developer productivity and accelerate workflows in the React ecosystem [2][3]

Group 1 - Progress has been recognized in the Constellation ShortList™ for DevOps in Q1 2025, marking the seventh consecutive year for the Chef platform [1][2] - The recognition highlights Progress's role in driving transformation initiatives, helping organizations navigate the evolving tech landscape [1][3] - The Chef portfolio includes automation tools for infrastructure, orchestration, compliance, and application management, enhancing efficiency for DevOps teams [2][3] Group 2 - The introduction of a fully managed, cloud-based platform by Progress simplifies IT for customers by automating maintenance, version upgrades, and security updates [2][3] - Progress emphasizes its commitment to IT automation, delivering continuous compliance and operational efficiency across hybrid and multi-cloud environments [3] - Constellation Research evaluates products for the ShortList based on client inquiries, partner conversations, customer references, and market share [3]

Core Insights - Progress has launched the 2025 Women in STEM Scholarship Series to support female students in the U.S., Bulgaria, and India, coinciding with International Women's Day [1][2] - The scholarship aims to empower women pursuing degrees in computer science, software engineering, IT, or related fields, highlighting the importance of education in driving innovation in the STEM industry [2] U.S. Scholarship Details - The Mary Székely Scholarship for Women in STEM offers a renewable award of $10,000 for women in Massachusetts enrolling in or completing their first year of an undergraduate degree in relevant fields [2] Bulgaria Scholarship Details - The Women in STEM Scholarship Program in Bulgaria provides two annual scholarships of BGN 3,000 each (approximately $1,700) for women in their second, third, or fourth year of study in related fields at accredited universities [3] India Scholarship Details - The Akanksha Scholarship for Women in STEM in India is a renewable award of up to INR 1,50,000 (approximately $2,000) annually for women pursuing undergraduate degrees in relevant fields, focusing on resilience and ambition [4] Corporate Social Responsibility - The scholarship series is part of Progress's CSR program, which emphasizes innovation and social impact, with past recipients demonstrating significant contributions to society through technology [5] Application Information - Applications for the scholarships must be submitted by April 11, 2025, with details available on the Progress website [6] Company Overview - Progress is a provider of AI-powered digital experience and infrastructure software, enabling organizations to develop and manage applications and digital experiences effectively [7]

Core Insights - Progress has introduced Web Application Firewall (WAF) functionality to its MOVEit Cloud managed file transfer solution, enhancing security for sensitive data transfers and ensuring compliance with evolving security standards [1][2][3] Group 1: Security Enhancements - The new WAF functionality blocks malicious web traffic, providing an additional layer of protection for organizations handling sensitive data [1][2] - It is designed to mitigate risks from injection attacks and unauthorized file access, built on OWASP-based industry standards to protect against the OWASP Top 10 threats [7] Group 2: Compliance and Regulatory Standards - The MOVEit Cloud solution is now certified to meet PCI DSS 4.0 requirements, along with HIPAA, HITECH, and HIPAA Omnibus standards, ensuring organizations can maintain compliance with the latest regulations [7] - The WAF functionality is critical as PCI DSS 4.0 mandates the deployment of a WAF for public-facing applications by March 31, 2025 [2] Group 3: Operational Efficiency - MOVEit Cloud simplifies the management of file transfer infrastructure, allowing IT leaders to focus on securing data transfers while Progress manages WAF updates and scaling [5][7] - The solution offers 24/7 monitoring and support from Progress security specialists, enhancing operational efficiency for organizations [7]

Core Insights - Progress has appointed Ed Keisling as the Chief AI Officer (CAIO) to lead the company's AI strategy and enhance its AI-powered product portfolio [1][2] - Keisling brings over three decades of experience in technology leadership, focusing on aligning engineering execution with strategic business goals [2][3] - The company emphasizes its commitment to AI innovation, providing responsible AI-powered digital experience and infrastructure software to a vast customer base [2][3] Company Overview - Progress is a provider of AI-powered digital experience and infrastructure software, enabling organizations to manage and develop applications with agility [5] - The company serves over 4 million developers and technologists across hundreds of thousands of enterprises globally [5] Leadership and Experience - Ed Keisling previously served as Senior Vice President of Engineering for Infrastructure Management at Progress, where he enhanced operational efficiency and drove innovation [3] - His prior experience includes executive roles in technology sectors, focusing on complex system architectures and cloud computing [3] Community Engagement - Keisling is involved in engineering development programs, mentoring students through initiatives like the UNH Pathways Program and MIT Undergraduate Practice Opportunities Program [4]